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KKR's Q3'26 earnings of $1.78 per share beat the $1.58 estimate, while revenues rose 26.7% to $1.86 billion.
KKR's AUM climbed 11.2% to $804.4 billion, while fee-related earnings surged 27.4% to $1.32 billion.
KKR boosted its share buyback program by $500 million, while rising expenses remain a key headwind.
Shares of KKR & Co. Inc. (KKR - Free Report) gained 2.1% in the pre-market trading session on better-than-expected third-quarter 2026 results. The company reported third-quarter adjusted net income per share of $1.78, surpassing the Zacks Consensus Estimate of $1.58. The bottom line rose from $1.41 in the prior-year quarter.
Results have primarily reflected growth in assets under management (AUM), management fees and fee-related performance revenues. However, an increase in expenses acted as a headwind.
The results include certain non-recurring items. After considering those, net income attributable to the company’s common stockholders (GAAP basis) was $1.12 billion, up from $859.9 million in the year-ago quarter.
KKR’s Q3 Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.86 billion, increasing 26.7% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.75 billion.
Management fees increased 12.9% year over year to $1.20 billion. Transaction and monitoring fees, net, were $327.9 million, relatively stable year over year. Fee-related performance revenues rose to $326.3 million from $73.2 million in the prior-year quarter.
Total segment expenses increased 24.9% year over year to $539.3 million.
As of Sept. 30, 2026, total AUM grew 11.2% year over year to $804.4 billion. Fee-paying AUM summed to $647.9 billion, which increased 10.7% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 24.6% year over year to $1.74 billion.
The company posted fee-related earnings of $1.32 billion, up 27.4% year over year.
KKR & Co.'s Capital Returns
The company repurchased and retired 6.2 million shares for $567 million from June 30 through Nov. 4, 2026. On Nov. 6, KKR approved an additional $500 million increase in its share repurchase program.
Our Viewpoint on KKR
The company will likely continue benefiting from its fundraising capabilities and growth in AUM in the quarters ahead. Significant growth in fee-related earnings, management fees and total operating earnings is aiding its financials.
In August 2026, the company announced the sale of USI Insurance Services, which is expected to close in the fourth quarter of 2026. Subject to closing, KKR expects to generate approximately $2 billion of adjusted net income from the transaction in the fourth quarter. However, rising fee-related compensation and other operating expenses are likely to keep the expense base elevated.
T. Rowe Price Group, Inc.(TROW - Free Report) reported third-quarter 2026 adjusted earnings per share of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.
TROW’s results benefited from higher investment advisory fees, increased average assets under management and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from record assets under management, higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on the results.
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KKR & Co. Stock Gains as Q3 Earnings Beat Estimates, AUM Rises Y/Y
Key Takeaways
Shares of KKR & Co. Inc. (KKR - Free Report) gained 2.1% in the pre-market trading session on better-than-expected third-quarter 2026 results. The company reported third-quarter adjusted net income per share of $1.78, surpassing the Zacks Consensus Estimate of $1.58. The bottom line rose from $1.41 in the prior-year quarter.
Results have primarily reflected growth in assets under management (AUM), management fees and fee-related performance revenues. However, an increase in expenses acted as a headwind.
The results include certain non-recurring items. After considering those, net income attributable to the company’s common stockholders (GAAP basis) was $1.12 billion, up from $859.9 million in the year-ago quarter.
KKR’s Q3 Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.86 billion, increasing 26.7% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.75 billion.
Management fees increased 12.9% year over year to $1.20 billion. Transaction and monitoring fees, net, were $327.9 million, relatively stable year over year. Fee-related performance revenues rose to $326.3 million from $73.2 million in the prior-year quarter.
Total segment expenses increased 24.9% year over year to $539.3 million.
As of Sept. 30, 2026, total AUM grew 11.2% year over year to $804.4 billion. Fee-paying AUM summed to $647.9 billion, which increased 10.7% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 24.6% year over year to $1.74 billion.
The company posted fee-related earnings of $1.32 billion, up 27.4% year over year.
KKR & Co.'s Capital Returns
The company repurchased and retired 6.2 million shares for $567 million from June 30 through Nov. 4, 2026. On Nov. 6, KKR approved an additional $500 million increase in its share repurchase program.
Our Viewpoint on KKR
The company will likely continue benefiting from its fundraising capabilities and growth in AUM in the quarters ahead. Significant growth in fee-related earnings, management fees and total operating earnings is aiding its financials.
In August 2026, the company announced the sale of USI Insurance Services, which is expected to close in the fourth quarter of 2026. Subject to closing, KKR expects to generate approximately $2 billion of adjusted net income from the transaction in the fourth quarter. However, rising fee-related compensation and other operating expenses are likely to keep the expense base elevated.
KKR & Co. Inc. Price, Consensus and EPS Surprise
KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote
Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Asset Managers
T. Rowe Price Group, Inc.(TROW - Free Report) reported third-quarter 2026 adjusted earnings per share of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.
TROW’s results benefited from higher investment advisory fees, increased average assets under management and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from record assets under management, higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on the results.